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Arq (ARQ) Degree of Operating Leverage : -9.26 (As of Mar. 2025)


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What is Arq Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Arq's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -9.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Arq's Degree of Operating Leverage or its related term are showing as below:

ARQ's Degree of Operating Leverage is ranked better than
90.22% of 2925 companies
in the Industrial Products industry
Industry Median: 1.1 vs ARQ: -9.26

Arq Degree of Operating Leverage Historical Data

The historical data trend for Arq's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arq Degree of Operating Leverage Chart

Arq Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.38 -18.12 -41.26 -2.30 -7.89

Arq Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -22.19 -7.41 -7.21 -7.89 -9.26

Competitive Comparison of Arq's Degree of Operating Leverage

For the Pollution & Treatment Controls subindustry, Arq's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arq's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Arq's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Arq's Degree of Operating Leverage falls into.


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Arq Degree of Operating Leverage Calculation

Arq's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.539 (Mar. 2025) / -4.703 (Mar. 2024) - 1 )/( 114.466 (Mar. 2025) / 100.118 (Mar. 2024) - 1 )
=-1.3272/0.1433
=-9.26***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Arq  (NAS:ARQ) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Arq Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Arq's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Arq Business Description

Industry
Traded in Other Exchanges
Address
8051 E. Maplewood Avenue, Suite 210, Greenwood Village, CO, USA, 80111
Arq Inc is an environmental technology company principally engaged in the sale of consumable air, water, and soil treatment solutions including activated carbon (AC) and chemical technologies. The company manufactures and sells activated carbon and other chemicals used to capture and remove contaminants for the coal-fired power generation, industrial, municipal water and air, water and soil treatment and remediation markets. Some of the products in its portfolio are Powdered Activated Carbon, Granula Activated Carbon, and Colloidal Carbon Product among others.
Executives
Richard Campbell-breeden director 30A BROOK STREET, LONDON X0 W1K 5DJ
Jeremy Blank director 6446 DREXEL AVENUE, LOS ANGELES CA 90048
Robert E. Rasmus director, officer: Chief Executive Officer THREE RIVERWAY, SUITE 1350, HOUSTON TX 77056
Joseph M Wong officer: Chief Technology Officer 640 PLAZA DRIVE, SUITE 270, C/O ADVANCED EMISSIONS SOLUTIONS, INC., HIGHLANDS RANCH CO 80129
Jeremy Williamson officer: Chief Operating Officer 8051 E. MAPLEWOOD AVE, SUITE 210, GREENWOOD VILLAGE CO 80111
Laurie Bergman director 460 NORTH GULPH ROAD, KING OF PRUSSIA PA 19406
Arq Ltd 10 percent owner 28-30 THE PARADE, ST. HELIER Y9 JE1 1EQ
Julian Alexander Mcintyre director 30A BROOK STREET, LONDON X0 W1K 5DJ
Morgan Fields officer: VP of Accounting 890 SANTA CRUZ AVE., MENLO PARK CA 94025
Christine Bellino officer: Chief Accounting Officer 8051 E. MAPLEWOOD AVE., SUITE 210, GREENWOOD VILLAGE CO 80111
Alta Fundamental Advisers Sp Llc director 1500 BROADWAY, SUITE 704, NEW YORK NY 10036
Carol S Eicher director ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Brian Leen director 640 PLAZA DRIVE, SUITE 270, C/O ADVANCED EMISSIONS SOLUTIONS, INC., HIGHLANDS RANCH CO 80129
Ron Hanson officer: SVP of Operations of ADA-ES 9135 S RIDGELINE BLVD, SUITE 200, HIGHLANDS RANCH CO 80129
Theodore James Sanders officer: General Counsel 640 PLAZA DRIVE, SUITE 270, HIGHLANDS RANCH CO 80129